Kingspan sales up four per cent in first quarter of the year

Good first quarter despite 'sluggish' start to the year

Building materials manufacturer Kingspan has issued a trading update for the first quarter of the year ahead of its AGM tomorrow (Thursday).

Overall, the group is reporting a good first quarter despite a sluggish start to the year, which it is attributing to seasonal factors but still expects to grow trading profit in the first half of this year.

Earlier this year, the company reported that revenues had grown by six per cent to €8.6bn in 2024 in what the company said a "record performance in a tough environment".

The trading update issued this morning shows group sales were €2.1bn for the three‐month period to March 31, putting them nine per cent ahead of prior year.

By market during the first quarter, Europe overall recorded sales growth with reasonable activity in general but the US has been slow.

"Whilst sales in the US have been understandably slow, order intake has been very strong, with the US orderbook currently at record levels. Latin American sales have been robust with the Middle East and India both starting the year well," reads the statement issued this morning.

Sales of insulation and insulated panels were up four per cent with underlying sales broadly in line. Group order intake volumes year to date are up on the same period last year.

A new product PowerPanel® has been launched in Ireland and Britain with a phased global rollout to follow in the coming years.

Roofing + Waterproofing sales grew by 55% in the first quarter bolstered significantly by the acquisition of Nordic Waterproofing, reported as an investment in the first quarter of 2024.

"This represents another development milestone for the division and opens up an unrivalled channel in the Nordic region. Our US execution plan remains firmly on track with the Oklahoma and Maryland plants both scheduled for production in early 2026," read the trading update.

Light, Air + Water sales were in line with the first quarter of last year and were down four per cent underlying reflecting slower US activity in the main.

Data Solutions sales were up 37% in the first quarter reflecting a continuation of the momentum seen last year.

"The pipeline of global data centre opportunities is strong, and growing, as AI applications take centre stage," detailed the statement.

Net debt at March 31, 2025, was €1,711m, an increase of €138m in the first quarter, reflecting the seasonal increase in working capital in the main.

'Robust' balance sheet

Kingspan has described its balance sheet as "robust" with leverage levels currently at circa 1.5 times net debt to EBITDA.

The Group's trading outlook, as Kingspan moves through the early part of the second quarter, remains in reasonable shape overall with sentiment varying significantly by region.

"We remain focussed on factors we can control in an environment where there is much background noise. With much of the second quarter remaining we expect to deliver overall trading profit growth in the first half," reads the statement.

Kingspan's AGM will take place at 9am tomorrow.